In Korea, the service industry represents 57.6% of GDP and 66.7% of employment (as of 2007), and this contribution is expected to increase with the advancement of the economic structure. However, despite the service industry's substantial contribution to the national economy, government and private R&D investment has historically been focused on the manufacturing industry, and the international competitiveness of the Korean service industry has remained weak. To overcome this status, this research proposes the service R&D strategy and policy recommendations. To this end, the service R&D model has been developed and national service R&D status and policy, service R&D status of listed firms and impact to firm's performance, and service R&D survey and analysis were analyzed and investigated. (The rest omitted)